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Gay Marriage in New York State: Issues and Repercussions
New York State has become the sixth state in the country to recognize same-sex marriage. The law in New York will confer state benefits to a gay couple, but not federal benefits, as the federal government has not recognized the right to same-sex marriage.
For example, gay couples who marry and live in New York will be able to file their state tax returns jointly, but not federal returns.
Gay couples who marry will be entitled to inherit from their spouses even in the absence of a will, in the event they die in testate. The Federal Defense of a Marriage Act defines a marriage as between a man and a woman and will not enable gay spouses to be eligible for social security, spousal or survivor benefits.
Some other benefits of the New York State law are as follows: estate and gift tax – New York State will allow spouses to transfer an unlimited amount of assets at death. Non-married “couples” must pay state estate taxes on estates that exceed $1,000,000.00. Once again, same-sex married couples will continue to be subject to federal gift taxes and estate taxes, unlike their opposite-sex counterparts.
Health insurance – people who work for companies that offer domestic partner insurance must pay income taxes on the value of their partner’s benefits, unless they are considered a dependent. Heterosexual married couples are not subject to the tax since the federal government recognizes them as an economic unit. Same-sex couples in New York won’t owe those taxes at the state level, but will still owe at the federal level.
State employee benefits – spouses of gay people who work for the state will be able to treat their spouses as spouses, eligible for health insurance, pension survivor benefits and other benefits normally flowing to spouses.
Problems also are undoubtedly going to arise where, for example, the governors of South Carolina and Georgia haves recently stated that their states will not recognize same-sex marriages (thereby, we submit, violating the full faith and credit provision of the United States Constitution, by the way) performed in other states (for example, New York) that legally allow such marriages. That means that if a couple legally marry in New York, and relocate to such a state, and then seek to be divorced therein, that state a) will not recognize them as married and b) will not grant a divorce. Where would that leave that couple? Time will tell with respect to these issues as long as there is a dichotomy between state law and federal law.
